Ready to Refinance?
Rate & Term Refi | Traditional Cash Out Refi | Debt Consolidation Refi (PLUS Reverse Mortgages!)
Explore your refinancing options with our comprehensive guide. Watch the video below to understand how refinancing could be the key to helping you realize your financial goals.
Debt Consolidation Refinance
Debt Consolidation Refinancing offers a strategic way to manage high-interest debts such as credit cards, car loans, home equity lines of credit (HELOCs) or other personal loans. By combining these debts with your mortgage loan, you can leverage a potentially lower rate and reduce your overall monthly payment. This method not only simplifies your payments but can also save you money on interest over time.
Reverse Mortgages
Reverse Mortgages aren’t actually refinances. This amazing financial product allows you to safely maintain ownership of your home while accesses the equity you’ve built up over the years. There are several ways to structure these, but the most common are lump-sum cash out withdrawals or structured monthly payments. The best part is that you maintain ownership of the property, and all of your other assets are fully protected in the event of a default.
Rate & Term Refinance
Rate and Term Refinancing allows you to adjust the interest rate, loan term, or both of your existing mortgage without changing the principal balance. This can be a wise choice if you're looking to secure a lower interest rate, reduce monthly payments, or alter the length of your mortgage term to match your financial goals. It's particularly effective during periods of lower interest rates or if your credit situation has improved since your original loan. A recent innovation in mortgage products is allowing you to keep your existing term while refinancing your rate. This allows people that have paid their mortgage for multiple years to refi into a lower rate without adding more years onto their loan. Pretty neat!
Traditional Cash Out Refinance
Cash Out Refinancing provides you an opportunity to tap into your home's equity for large expenses. By refinancing for more than you owe on your current mortgage, you can take the difference in cash. This can be used for home improvements, funding educational pursuits, or investing in other properties. It's an excellent way to leverage your investment in your home to meet larger financial objectives. Taking a cash out refinance will often result in a mandatory bump in your interest rate, called a “hit”, usually in the range of 0.125% - 0.5% (keep this in mind if you’re toying with the idea)
Removing Mortgage Insurance
Mortgage Insurance is required on most loans to protect the lender in the event the borrower defaults on the loan. It’s an insurance policy that benefits the lender, but you pay the monthly premium. Refinancing a mortgage can help save money by removing the need for mortgage insurance so you don’t have to pay the premium. This is often applicable for conventional loans, where private mortgage insurance (PMI) can be removed once the homeowner reaches the required equity level on the property (20%). However, for FHA loans, mortgage insurance premium (MIP) typically cannot be removed and requires refinancing into a conventional loan to eliminate these extra costs.